Accounting Policies of Rajputana Biodiesel Ltd. Company

Mar 31, 2025

Significant Accounting Policies

2.1. Basis of Accounting and Preparation of Financial Statement

The Statement of Assets and Liabilities of the Company as on March 31, 2025, and the Statement of Profit and
Loss and Statements of Cash Flows for the financial year ended on March 31, 2025 and the annexure thereto
(collectively, the "Financial Statements”) have been compiled by the management from the Financial Statements
of the Company for the financial year ended on March 31, 2025. These financial statements are prepared in
accordance with Indian Generally Accepted Accounting Principles (GAAP) under the historical cost convention
on the accrual basis. GAAP comprises mandatory accounting standards as prescribed under Section 133 of the
Companies Act, 2013 (''Act'') read with Rule 7 of the Companies (Accounts) Rules, 2021.

2.2. Use of Estimates

The preparation of the financial statements are in conformity with Generally Accepted Accounting Principles
(GAAP) in India requires management to make estimates and assumptions that affect the reported amounts
of assets & liabilities and the disclosure of contingent liabilities on the date of financial statements & reported
amounts of revenue & expenses for that year.

Although these estimates are based upon management best knowledge of current event & actions, accounting
estimates could change from period to period. Actual results could differ from those estimates. Appropriates
changes in estimates are made as the management becomes aware of the changes in circumstances surroundings
the estimates. Changes in estimates are reflected in financial statements in the period in which changes are made
and, if material, their effects are disclosed in the notes to accounts to Financial Statements.

2.3. Revenue Recognition
Sale of goods:

The Company derives its revenue primarily from engaging in the manufacturing and supplying of biofuels and
its by-products, namely glycerine and fatty acids. Our focus is to add value to these by-products, exploring the
potential for exports in the bio-diesel segment. Sales are recognised, net of returns and trade discounts, on transfer
of significant risks and rewards of ownership to the buyer, which company follows ex-factory i.e after the goods
cross the factory gate. Sales exclude excise duty, Goods and Services Tax.

Income from services:

Revenues from contracts priced on a time and material basis are recognised when services are rendered and
related costs are incurred. Revenues from turnkey contracts, which are generally time bound fixed price contracts,

are recognised over the life of the contract using the proportionate completion method, with contract costs
determining the degree of completion. Foreseeable losses on such contracts are recognised when probable.

Interest Income:

Revenue is recognized on the time proportion basis after taking into account the amount outstanding and the
rate applicable i.e. on the basis of matching concept.

Dividend Income:

Dividend Income is recognized when the owners right to receive payment is established.

Other Income:

Other items of income and expenditure are recognized on accrual basis and as a going concern basis, and the
accounting policies are consistent with the generally accepted accounting policies.

2.4. Inventory

Inventories are valued at the lower of cost (on weighted average basis) and the net realisable value after providing
for obsolescence and other losses, where considered necessary. Cost includes all charges in bringing the goods to
the point of sale, including octroi and other levies, transit insurance and receiving charges. Work-in-progress and
finished goods include appropriate proportion of overheads.The company follows the policy of recognising the
goods in transit as on the balance date in its closing stock of inventory.

2.5. Cash and Cash Equivalents (for the purpose of Cash Flow Statement)

Cash comprises cash on hand. Cash equivalents are short-term balances (with an original maturity of three months
or less from the date of acquisition), highly liquid investments that are readily convertible into known amounts of
cash and which are subject to insignificant risk of changes in value.

2.6. Cash Flow Statement

Cash flows are reported using the indirect method, whereby profit/ (loss) before extraordinary items and tax is
adjusted for the effects of transactions of non-cash nature and any deferrals or accruals of past or future cash
receipts or payments. The cash flows from operating, investing and financing activities of the Company are
segregated based on the available information.

2.7. Borrowing Cost

Borrowing Cost attributable to acquisition and construction of qualifying assets are capitalized as a part of the cost
of such asset up to the date when such asset is ready for its intended use. Other borrowing costs are charged to
Statement of Profit & Loss.

2.8. Property, Plant and Equipment Including Intangible Assets
Tangible fixed assets

Fixed assets are carried at cost less accumulated depreciation and impairment losses, if any. The cost of fixed
assets includes interest on borrowings attributable to acquisition of qualifying fixed assets up to the date the asset
is ready for its intended use and other incidental expenses incurred up to that date.

Exchange differences arising on restatement / settlement of long-term foreign currency borrowings relating to
acquisition of depreciable fixed assets are adjusted to the cost of the respective assets and depreciated over the
remaining useful life of such assets.

Machinery spares which can be used only in connection with an item of fixed asset and whose use is expected
to be irregular are capitalised and depreciated over the useful life of the principal item of the relevant assets.
Subsequent expenditure relating to fixed assets is capitalised only if such expenditure results in an increase in the
future benefits from such asset beyond its previously assessed standard of performance.

Fixed assets acquired and put to use for project purpose are capitalised and depreciation thereon is included in
the project cost till commissioning of the project.

Fixed assets acquired in full or part exchange for another asset are recorded at the fair market value or the net book
value of the asset given up, adjusted for any balancing cash consideration. Fair market value is determined either
for the assets acquired or asset given up, whichever is more clearly evident. Fixed assets acquired in exchange
for securities of the Company are recorded at the fair market value of the assets or the fair market value of the
securities issued, whichever is more clearly evident.Fixed assets retired from active use and held for sale are stated
at the lower of their net book value and net realisable value and are disclosed separately in the Balance Sheet.

Capital work-in-progress:

Projects under which assets are not ready for their intended use and other capital work-in-progress are carried at
cost, comprising direct cost, related incidental expenses and attributable interest.

Intangible assets

Intangible assets are carried at cost less accumulated amortisation and impairment losses, if any. The cost of
an intangible asset comprises its purchase price, including any import duties and other taxes (other than those
subsequently recoverable from the taxing authorities), and any directly attributable expenditure on making the
asset ready for its intended use and net of any trade discounts and rebates.

Subsequent expenditure on an intangible asset after its purchase / completion is recognised as an expense when
incurred unless it is probable that such expenditure will enable the asset to generate future economic benefits in
excess of its originally assessed standards of performance and such expenditure can be measured and attributed
to the asset reliably, in which case such expenditure is added to the cost of the asset.

2.9. Depreciation

Depreciation on fixed assets is provided to the extent of Depreciable amount on written down value method.
Depreciation is provided based on useful life of the assets as prescribed in Schedule II to the Companies Act,
2013. Salvage Value of the assets has been taken @ 5% of Original Cost as prescribed in Schedule II. Depreciation
on additions during the year is calculated on pro rata basis. The useful life of assets have been used as tabulated
below:-

Intangible assets are amortised on a straight-line basis over the estimated useful life as specified in Schedule
II of the Companies Act, 2013. The amortisation expense on intangible assets with finite lives is recognised in
the statement of profit and loss. In respect of the assets sold during the year, amortisation is provided from the
beginning of the year till the date of its disposal.

2.10. Impairment of Assets:

The Management periodically assesses using, external and internal sources, whether there is an indication that
an asset may be impaired. An impairment loss is recognised wherever the carrying value of an asset exceeds its
recoverable amount. The recoverable amount is higher of the asset''s net selling price and value in use, which
means the present value of future cash flows expected to arise from the continuing use of the asset and its
eventual disposal. Reversal of impairment loss is recognised immediately as income in the profit and loss account.

2.11. Foreign currency transactions and translations
Initial recognition:

Transactions in foreign currencies entered into by the Company and its integral foreign operations are accounted
at the exchange rates prevailing on the date of the transaction or at rates that closely approximate the rate at
the date of the transaction. The excahnge rate is determined by the parent company and used by all subsidiaries
over the globe. Measurement of foreign currency monetary items at the Balance Sheet date. Foreign currency
monetary items of the Company outstanding at the Balance Sheet date are restated at the year-end rates.

Treatment of exchange differences:

Exchange differences arising on settlement / restatement of short-term foreign currency monetary assets and
liabilities of the Company and its integral foreign operations are recognised as income or expense in the Statement
of Profit and Loss.

2.12. Employee benefits

A. Defined benefit plans

Gratuity liability is a defined benefit obligation and is unfunded. The company accounts for liability for future
gratuity benefits based on the actuarial valuation using Projected Unit Credit Method carried out at the end
of each financial Year.

B. Defined contribution plans

The Company''s contribution to provident fund & ESI are considered as defined contribution plans and are
charged as an expense as they fall due based on the amount of contribution required to be made.

2.13. Borrowing costs

Borrowing costs include interest, amortisation of ancillary costs incurred and exchange differences arising from
foreign currency. borrowings to the extent they are regarded as an adjustment to the interest cost. Costs in
connection with the borrowing of funds to the extent not directly related to the acquisition of qualifying assets
are charged to the Statement of Profit and Loss over the tenure of the loan. Borrowing costs, allocated to and
utilised for qualifying assets, pertaining to the period from commencement of activities relating to construction /
development of the qualifying asset upto the date of capitalisation of such asset is added to the cost of the assets.

Capitalisation of borrowing costs is suspended and charged to the Statement of Profit and Loss during extended
periods when active development activity on the qualifying assets is interrupted.

2.14. Leases

In the lease arrangements currently undertaken by the company as a lessee the risks and rewards incidental to
ownership of the assets substantially vest with the lessor and hence the lease is recognised as operating leases.
Lease rentals under operating leases are recognised in the Statement of Profit and Loss on a straight-line basis.

2.15. Investments

Investments are classified as long term or current based on intention of the management at the time of purchase.
Initial investment is done at cost. The cost comprises purchase price and directly attributable acquisition charges.
The share of profit/loss in case of investment in Partnership Firm/LLP has been recognized every year with
corresponding credit/debit to the Profit & loss account. Further Dividend reinvested in case of mutual funds
is added to the value of investment in mutual funds with corresponding credit is made to the profit and loss
statement. Current investments are carried in the financial statements at lower of cost and fair value. Long-term
investments are stated at cost. A provision for diminution is made to recognize a decline, other than temporary,
in the value of long-term investments. On disposal of an investment, the difference between its carrying amount
and net disposal proceeds is charged or credited to the statement of profit & loss.

2.16. Earnings Per Share

The Company reports basic Earnings per Share (EPS) in accordance with Accounting Standard - 20 on Earnings
per Share. Basic EPS is computed by dividing the net profit or loss for the year by the weighted average number

of Equity shares outstanding during the year.

Diluted earnings per share is computed by dividing the profit / (loss) after tax (including the post tax effect of
extraordinary items, if any) as adjusted for dividend, interest and other charges to expense or income relating to
the dilutive potential equity shares, by the weighted average number of equity shares considered for deriving
basic earnings per share and the weighted average number of equity shares which could have been issued on the
conversion of all dilutive potential equity shares.

Potential equity shares are deemed to be dilutive only if their conversion to equity shares would decrease the net
profit per share from continuing ordinary operations. Potential dilutive equity shares are deemed to be converted
as at the beginning of the period, unless they have been issued at a later date. The dilutive potential equity shares
are adjusted for the proceeds receivable had the shares been actually issued at fair value (i.e. average market value
of the outstanding shares).

Dilutive potential equity shares are determined independently for each period presented. The number of equity
shares and potentially dilutive equity shares are adjusted for share splits / reverse share splits and bonus shares, as
appropriate.

2.17. Taxes on Income

Current tax is the amount of tax payable on the taxable income for the year as determined in accordance with the
provisions of the Income Tax Act, 1961.

From current financial year, the company has adopted for new tax regime under section 115BAA. Therefore, MAT
provision is not applicable on the company. Hence, the company has not recognised MAT in the current year and
the balance of previous balance of MAT has been reversed.

Deferred tax is recognised on timing differences, being the differences between the taxable income and the
accounting income that originate in one period and are capable of reversal in one or more subsequent periods.
Deferred tax is measured using the tax rates and the tax laws enacted or substantially enacted as at the reporting
date. Deferred tax liabilities are recognised for all timing differences.

Deferred tax assets in respect of unabsorbed depreciation and carry forward of losses are recognised only if there
is virtual certainty that there will be sufficient future taxable income available to realise such assets. Deferred tax
assets are recognised for timing differences of other items only to the extent that reasonable certainty exists that
sufficient future taxable income will be available against which these can be realised.

Deferred tax assets and liabilities are offset if such items relate to taxes on income levied by the same governing
tax laws and the Company has a legally enforceable right for such set off. Deferred tax assets are reviewed at each
Balance Sheet date for their realisability.

Current and deferred tax relating to items directly recognised in equity are recognised in equity and not in the
Statement of Profit and Loss.

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Mar 31, 2024

Notes to Accounts - 2
Significant Accounting Policies

2.1. Basis of Accounting and Preparation of Financial Statement

These financial statements of the Company are prepared in accordance with Indian Generally Accepted Accounting
Principles (GAAP) under the historical cost convention on the accrual basis. GAAP comprises mandatory accounting
standards as prescribed under the relevant provisions of the Companies Act 2013. Accounting policies have been
consistently applied except where a newly issued accounting standard is initially adopted or a revision to an existing
accounting standard requires a change in the accounung policy hitherto in use.

2.2. t’sc of Estimates

The preparation of the financial statements are in conformity with Generally Accepted Accounting Principles (GAAP) in

2.3. Revenue Recognition
Sale of goods:

Sales are recognised, net of returns and trade discounts, on transfer of significant risks and rewards of ownership to the
buyer, which company follows ex-factory i.c after the goods cross the factory gate. Sales exclude excise duty, Goods and
Services Tax
Income from services:

Revenues from contracts priced on a time and material basis are recognised when services are rendered and related costs
arc incurred. Revenues from turnkey contracts, which arc generally time bound fixed price contracts, are recognised over
the life of the contract using the proportionate completion method, with contract costs determining the degree of
completion. Foreseeable losses on such contracts are recognised when probable.

2.4. Inventory

Inventories are valued at the lower of cost (on weighted average basis) and the net realisable value after providing for
obsolescence and other losses, where considered necessary. Cost includes all charges in bringing the goods to the point
of sale, including octroi and other levies, transit insurance and receiving charges. Work-in-progress and finished goods
include appropriate proportion of overhcads.The company follows the policy of recognising the goods in transit as on the
balance date in its closing stock of inventor)''.

2.5. Cash and Cash Equivalents (for the purpose of Cash Flow Statement)

Cash comprises cash on hand. Cash equivalents are short-term balances (with an original maturity of three months or
less from Lite date of acquisition), highly liquid investments that arc readily convertible into known amounts of cash and
which are subject to insignificant risk of changes in value.

2.6. Cash Flow Statement

Cash flows arc reported using the indirect method, whereby profit/ (loss) before extraordinary items and tax is adjusted
for the effects of transactions of non-cash nature and any deferrals or accruals of past or future cash receipts or
payments. The cash flows from operating, investing and financing activities of the Company are segregated based on the
available information.

2.7. Burrowing Cost

Borrowing Cost attributable to acquisition and construction of qualifying assets arc capitalized as a part of the cost of
such asset up to the date when such asset is ready for its intended use Other borrowing costs arc charged to Statement of
Profit & Loss.

2.8. Other Income

Other income is accounted on accrual basis.

2.9. Depreciation

Depreciation on fixed assets is provided to the extent of Depreciable amount on written down value method
Depreciation is provided based on useful life of the assets as prescribed in Schedule II to the Companies Act 2013
Salvage Value of the assets has been taken @ 5% of Original Cost as prescribed in Schedule II. Depreciation on
additions during the year is calculated on pro rata basis The useful life of assets have been used as tabulated below:

2.10. Tangible fixed assets
Tangible fixed assets:

Fixed assets are carried at cost less accumulated depreciation and impairment losses, if any. The cost of fixed assets
includes interest on borrowings attributable to acquisition of qualifying fixed assets up to the date the asset is ready for
its intended use and other incidental expenses incurred up to that date.

Exchange differences arising on restatement / settlement of long-term foreign currency borrowings relating to acquisition
of depreciable fixed assets are adjusted to the cost of the respective assets and depreciated over the remaining useful life
of such assets.

Machinery spares which can be used only in connection with an item of fixed asset and whose use is expected to be
irregular are capitalised and depreciated over the useful life of the principal item of the relevant assets. Subsequent
expenditure relating to fixed assets is capitalised only if such expenditure results in an increase in the future benefits
from such asset beyond its previously assessed standard of performance.

Fixed assets acquired and put to use for project purpose arc capitalised and depreciation thereon is included in the
project cost till commissioning of the project

Fixed assets acquired in full or part exchange for another asset are recorded at the fair market value or the net book value
of the asset given up, adjusted for any balancing cash consideration. Fair market value is determined cither for the assets
acquired or asset given up, whichever is more clearly evident Fixed assets acquired in exchange for securities of the
Company are recorded at the fair market value of the assets or the fair market value of the securities issued, whichever is
more clearly evident.Fixed assets retired from active use and held for sale are stated at the lower of their net book value
and net realisable value and arc disclosed separately in the Balance Sheet.

Capital work-in-progress:

Projects under which assets are not ready for their intended use and other capital work-in-progress arc carried at cost,
comprising direct cost, related incidental expenses and attributable interest

2.11. Intangible assets

Intangible assets are carried at cost less accumulated amortisation and impairment losses, if any. The cost of an
intangible asset comprises its purchase price, including any import duties and other taxes (other than those subsequently
recoverable from the taxing authorities), and any directly attributable expenditure on making the asset ready for its
intended use and net of any trade discounts and rebates

Subsequent expenditure on an intangible asset after its purchase / completion is recognised as an expense when incurred
unless it is probable that such expenditure will enable the asset to generate future economic benefits in excess of its
originally assessed standards of performance and such expenditure can be measured and attributed to the asset reliably,
in which case such expenditure is added to the cost of the asset

2.11. Foreign currency transactions and translations
Initial recognition:

Transactions in foreign currencies entered into by the Company and its integral foreign operations arc accounted at the
exchange rates prevailing on the date of the transaction or at rates that closely approximate the rate at the date of the
transaction The excahnge rate is determined by the parent company and used by all subsidiaries over the globe.

Measurement of foreign currency monetary items at the Balance Sheet date

Foreign currency monetary items of the Company outstanding at the Balance Sheet date arc restated at the year-end
rates

Treatment of exchange differences:

Exchange differences arising on settlement / restatement of short-term foreign currency monetary assets and liabilities of
the Company and its integral foreign operations arc recognised as income or expense in the Statement of Profit and Loss.

2.12. Employee benefits

Defined benefit plans

Define Benefits plan includes gratuity fund and Leave Incashment.

Defined contribution plans

The Company''s contribution to provident fund are considered as defined contribution plans and arc charged as an
expense as they fall due based on the amount of contribution required to be made.

2.13. Borrowing costs

Borrowing costs include interest, amortisation of ancillary costs incurred and exchange differences arising from foreign
currency borrowings to the extent they arc regarded as an adjustment to the interest cost Costs in connection with the
borrowing of funds to the extent not directly related to the acquisition of qualifying assets are charged to the Statement
of Profit and Loss over the tenure of the loan. Borrowing costs, allocated to and utilised for qualifying assets, pertaining
to the period from commencement of activities relating to construction / development of the qualifying asset upto the
date of capitalisation of such asset is added to the cost of the assets

Capitalisation of borrowing costs is suspended and charged to the Statement of Profit and Loss during extended periods
when active development activity on the qualifying assets is interrupted.

2.14. Leases

In the lease arrangements currently undertaken by the company as a lessee the risks and rewards incidental to ownership
of the assets substantially vest with the lessor and hence the lease is recognised as operating leases. Lease rentals under
operating leases arc recognised in the Statement of Profit and Loss on a straight-line basis.

2.15. Investments

Investments are classified as long term or current based on intention of the management at the time of purchase. Initial
investment is done at cost The cost comprises purchase price and directly attributable acquisition charges. The share of
profit/loss in case of investment in Partnership Firm/LLP has been recognized every year with corresponding credit/debit
to the Profit & loss account Further Dividend reinvested in case of mutual funds is added to the value of investment in
mutual funds with corresponding credit is made to the profit and loss statement. Current investments are carried in the
financial statements at lower of cost and fair value. Long-term investments are stated at cost. A provision for diminution
is made to recognize a decline, other than temporary, in the value of long-term investments. On disposal of an
investment, the difference between its carrying amount and net disposal proceeds is charged or credited to the statement
of profit & loss.

2.16. Earnings Per Share

The Company reports basic Earnings per Share (EPS) in accordance with Accounting Standard - 20 on Earnings per
Share Basic EPS is computed by dividing the net profit or loss for the year by the weighted average number of Equity-
shares outstanding during the year

Diluted earnings per share is computed by dividing the profit / (loss) after tax (including the post tax effect of
extraordinary items, if any) as adjusted for dividend, interest and other charges to expense or income relating to the
dilutive potential equity shares, by the weighted average number of equity shares considered for deriving basic earnings
per share and the weighted average number of equity shares which could have been issued on the conversion of all
dilutive potential equity shares.

Potential equity shares are deemed to be dilutive only if their conversion to equity shares would decrease the net profit
per share from continuing ordinary operations. Potential dilutive equity shares arc deemed to be converted as at the
beginning of the period, unless they have been issued at a later date The dilutive potential equity shares are adjusted for
the proceeds receivable had the shares been actually issued at fair value (i.e. average market value of the outstanding
shares).

Dilutive potential equity shares arc determined independently for each period presented. The number of equity shares
and potentially dilutive equity shares arc adjusted for share splits / reverse share splits and bonus shares, as appropriate.

2.17. Taxes on Income

Current tax is the amount of tax payable on the taxable income for the year as determined in accordance with the
provisions of the Income Tax Act, 1961.

From current financial year, the company has adopted for new tax regime under section 115BAA. Therefore, MAT
provision is not applicable on the company Hence, the company has not recognised MAT in the current year and the
balance of previous balance of MAT has been reversed.

Deferred tax is recognised on timing differences, being the differences between the taxable income and the accounting
income that originate in one period and are capable of reversal in one or more subsequent periods. Deferred tax is
measured using the tax rates and the tax laws enacted or substantially enacted as at the reporting date. Deferred tax
liabilities are recognised for all timing differences.

Deferred tax assets in respect of unabsorbed depreciation and carry forward of losses are recognised only if there is
virtual certainty that there will be sufficient future taxable income available to realise such assets. Deferred tax assets are
recognised for timing differences of other items only to the extent that reasonable certainty exists that sufficient future
taxable income will be available against which these can be realised.

Deferred tax assets and liabilities are offset if such items relate to taxes on income levied by the same governing tax laws
and the Company has a legally enforceable right for such set off Deferred tax assets are reviewed at each Balance Sheet
date for their readability.

Current and deferred tax relating to items directly recognised in equity are recognised in equity and not in the Statement
of Profit and Loss.